Economy | Portuguese Language Blog

Posts under "Economy"

Bovespa Ends 2009 with Highest Global Gains

Estadão announced today that Bovespa, the Brazilian stock market located in São Paulo, closed the year with the highest gains of any stock market in the world. It closed at a high of 120.9 percent, compared to 118 percent in Indonesia, 25.4 percent in the United States, and 6.7 percent in Japan.

This percentage is based on dollars, in a system to measure stock market performance. It was created by MSCI, Inc, a division of Morgan Stanley.

Despite the encouraging economic achievements, Brazilian economists expect a more volatile year in 2010 with smaller gains.

To read the full article, click here.

Brazil Business News

Posted by Rachel No Comments

Nov 18 2009

Let’s take a look at some of the business headlines from Brazil this week:

Portuguese

Lucro da Petrobras recua, Zero Hora
Ampliação da matriz de energia é uma das saídas para evitar novos apagões, Correio Braziliense
Petrobras anuncia descoberta de jazida de petróleo leve na Bacia de Campos, G1
Brasil gera 230,000 empregos e tem melhor outubro da historia, Folha
Bovespa fecha em alta, Terra/Reuters

English

Dell to launch smartphone…in Brazil, Wall Street Journal
Repsol to invest up to $15 billion in Brazil by 2020, Bloomberg
Brazil Petrobras considers ending Iran operations, Wall Street Journal

Government Tax Threatens Foreign Investment in Brazil

Posted by Rachel No Comments

Oct 22 2009

This week, the Wall Street Journal reported that the Brazilian government has now imposed a two percent tax on foreign investment entering Brazil, hurting the local stock markets.

Brazil has weathered the global economic crisis much better than other countries, and the Ibovespa index rose 70% since March. The government has imposed tax on stock market purchases before, at 1.5% in 2008. The move this October is due to the strong real, which is hurting Brazilian exports.

However, experts say the move is already been detrimental to Brazilian stock markets and small and medium-sized companies looking to get onto the market in Brazil. They also say the move could threaten Brazil’s relatively new investment-grade status.

But like things in Brazil sometimes go, it seems investors may have already discovered a jeitinho to get around the tax. Investors looking to buy equities in Brazil could buy the equivalent stock in New York, cancel the purchase, and as a result get the equivalent Brazilian stock.

To read more, see the WSJ article here.

Vale in the News

Posted by Rachel No Comments

Oct 20 2009

Vale, one of Brazil’s highest-earning companies and the largest iron ore producer in the world, has been in the news this week with reports about increasing Brazilian investment and tension with President Lula. Let’s take a look at some of the headlines: